Mode of circular economy in China's iron and steel industry: a case study in Wu'an city

Abstract

The iron and steel industry is a resource and energy intensive industry; in China, it also produces high pollution and emissions. Therefore, the iron and steel industry in China is inevitably developing a circular economy. This study focuses on private steel enterprises in China, whose annual pig iron output comprised more than half the total national output of 2010. Firstly, this study provides a historical perspective on the circular economy mode inherent in this sector, explains how significant reductions in energy consumption and pollutant emissions have been realized, and offers guidance for future initiatives. Then, the states of various circular economy development pathways for the Wu'an Iron and Steel Group (WISG), a typical private steel enterprise based in North China, are examined as a case study. To assess the circular economy of the WISG, an evaluation system used by this industry to estimate circular economy performance-that is, a system that uses circular economy efficiency composite index (CEECI) values-is introduced. Our results indicate that the CEECI values of the WISG were 0.72 and 0.89 in 2007 and 2010, respectively, which were lower than those of the national large and medium-sized key iron and steel enterprises (NKISE) in China. Although the implementation of a circular economy has greatly enhanced the WISG with respect to reducing pollution, further measures, such as improving the utilization rates of coke oven gas, converter gas, and converter slag, as well as reducing sulfur dioxide emissions, are urgently required. The integration of these measures into the current circumstances is not only possible in the future but is inevitably essential to achieving sustainable development in the steel industry. (C) 2013 Elsevier Ltd. All rights reserved.